P R O F E S S I O N A L DEVELOPMENTBY KENNETH E. FRACARO The Real Meaning of Empowerment Want to motivate your staff? Empower your employees—don’t delegate. The result? Increased job performance and company success. “Joan, we need to revise the blueprint drawing on the pressing machine to show its placement three feet to the west,” said Jack, the company representative. Joan, the contract engineer, responded, “I need to call my boss and get his approval.” “How come?” Jack asked. “I’ve shown you why the drawing is wrong. We need the machine in operation by 6:00 p.m. tomorrow.” Joan said, “I’m sorry, but I’m not authorized to make the decision. I’ll phone my boss.” After several minutes, Joan said, “Jack, my boss must be in a meeting or at another job site. I’ll keep trying to reach him.” Joan contacted her manager four hours later and received approval to relocate the pressing machine. Contractors started the machine four hours late, resulting in lost production and additional stand-by labor costs. If Joan had been empowered, the outcome would have been different. The essence of empowerment is to release, rather than ignore or underutilize, employees’ experience, initiative, knowledge, and wisdom. Employee performance is a major factor that leads to the success or failure of a business. Empowering employees enhances their skills and performance. Delegation is not empowerment; it is giving an employee tasks so a manager can work on other jobs. Empowerment is assigning responsibilities, authority, and decision-making power to employees and holding them accountable for results. In her article, “An Overview of Employee Empowerment,” Heloisa Fragoso defines empowerment as “the enlargement of employees’ jobs, giving them the responsibility and authority to make decisions about their work without supervisory approval while creating value for the ultimate customers.”1 continues down through the company hierarchy. Each level of management must receive the authority and decisionmaking power to accomplish its particular responsibilities. Each level must relinquish authority and decision-making power to employees on the level directly below it. In her article, Fragoso notes that “the power managers have—to influence behavior of employees and work responsibilities—must now be shared with employees through the creation of trust, assurance, motivation, and support. Work-related decisions and full control of the work is pushed down toward the lowest operating levels.”2 Some employers have instituted empowerment programs that are, in fact, not what they are supposed to be. Adrian Wilkinson, in “Empowerment: Theory and Practice,” states that, “Even though employers have instituted ‘empowerment programs,’ they varied in the decisionmaking powers given to employees. They were more of an effort to increase employee contributions to the company.”3 Elements of Empowerment Elements of empowerment distinguish it from delegation. In their book, Three Keys to Empowerment, Ken Blanchard, John Carlos, and Alan Randolph state, “In a hierarchy, structure is created to inhibit the behavior of people. Rules, procedures, policies, and management relationships inform people about what they cannot do or how they must do a task. In empowerment, the structures have a different purpose and take different forms. Now, the structure is intended to inform team members about the ranges they can act with autonomy. Employees to be empowered must know what their specific responsibilities, authority, decision-making powers are to operate within the new boundaries to be created.”4 Carol Yeh-Yun, author of “The Essence of Empowerment: A Conceptual Model and Case Illustration,” writes that three elements exist within empowerment. Each needs to be present for empowerment to be successful. Source of Empowerment Upper management is the source of empowerment. They empower the level of management reporting to them. That level then empowers the next-lower level, and the process 4 ■ Contract Management / March 2006 Everyone should be set free to tap his or her own unique talents to the maximum extent possible. teach company financials. “Empowerment is a win–win situation—customers benefit from sharp employees. Explain company vision and values. They need skills to make correct decisions and accomplish additional responsibilities. and view mistakes positively. Six Steps to Empower Employees Perform six steps to empower employees.”11 . Fragoso states in her article that “employees must have a clear vision of success. implement. and employees benefit from improving their confidence and self-esteem. Step #2: Choose employees to empower.”5 ■ The essence of empowerment is to release. Define boundaries to clarify decisions employees will and will not make.” regardless of potential rewards.”10 ■ “Skills—Empowered employees are trained to have effective problem-solving and communication skills. Training should be continuous because it is a major key to the success of a business. employees’ experience. and are held accountable for workrelated decisions. companies benefit from satisfied customers and sharp employees. immersed in a culture of empowerment and reinforced by empowering management practices. knowledge.” Tom Dossenbach states. and decision-making power to meet company and department goals. Among other benefits are Company success. The Individualized Corporation.”8 Step #5: Provide training to employees. Some employees are unwilling to accept additional responsibilities and decision-making power 6 ■ Contract Management / March 2006 Benefits of Empowerment Employee empowerment benefits a company by developing personnel and attaining objectives and goals and overcoming challenges.P r o D C O R N E R ■ “Style—Empowered employees have a working style of self-management and possess a team spirit. Blanchard. Let employees decide how to handle clients. Employee performance is a major factor that leads to the success or failure of a business. and wisdom. Also.”9 Most companies will train new employees.” “Staff—Empowered employees are bred in empowering organizations. Employees make. share some sensitive information.”6 Dossenbach believes “empowerment should not be restricted by one’s natural abilities. Step #1: Acquire empowerment.”7 Employees have their own unique aptitudes and abilities. Step #6: Inspire individual initiatives. Employees must want to be empowered. openness to challenges. initiative. Define the responsibilities. establish clear standards and expectations. and each is necessary to fully empower employees. and give them discretionary power when deciding what to spend in order to mend a certain problem. they become more inspired and more effective. decentralize resources and responsibilities). authority. The steps are in sequence and in a logical order. and Randolph state. Step #4: Share company information. With empowering leaders as drivers. Open financial books and inform employees of the situation so they can feel more related to the company. Current employees with experience and knowledge also need training. and tolerance for failure). Train them to enhance these abilities and develop their aptitudes. and teach decision-making and problem-solving skills. Carlos. When you give an employee permission to use their creativity. Three Keys to Empowerment. clarify priorities. In their book. rather than ignore or underutilize. Upper management defines your role and assigns responsibilities. they will feel more accountable for their actions and outcomes of a challenge. They must be willing to relinquish authority and decision-making power to lower levels of the organization. In addition. Step #3: Provide role information. share good and bad information. Christopher Bartlett and Sumantra Ghoshal in their book. list facts people have and need. Fragoso notes that. In “Let Your Employees Handle the Trees. authority. An inspired employee is a highly productive resource to a company and department. Upper management starts the empowerment process. and decision-making power that you will assign to employees. Teach them the basics of cost and revenue. They challenge inefficient policies and identify problems. state that to “build on the belief of the individual [one must] create a sense of ownership (create small performance units. specify performance criteria and rewards for outstanding achievement. and provide a supportive environment (coaching. Define your role to employees. “Help people to understand the need for change. employees are expected to grow. develop self-discipline. “There is a big difference between motivating someone to achieve and telling them how to perform tasks to accomplish your goals. 1999): 11. An “empowered” Joan would result in a different outcome than the late start of the machine. 9. employer-provided health care. Use of employees’ full potential. Goals are an integral part in planning for individual and company successes. “Empowerment: Commerce Bank and Cast-Fab Technologies.org. overall job satisfaction increases. self-esteem.” Jason Hayes writes that. FRACARO is a freelance writer from Hixson. job-sharing. Let’s make the change. Ibid. of the machine by 6:00 p. self-criticism. Heloisa Fragoso. leading to a successful company and satisfied employees. “Employee Empowerment: Commerce Bank and Cast-Fab Technologies. Joan responded. Ken Blanchard.: Harper Business. Emporia State University (January 16. job benefits. The Individualized Corporation (New York.” 12. attendance at wellness programs.Y. 6. The Three Keys to Empowerment: 252. when an employee feels as though he/she has some ownership in the job. 7. 5. Also.”12 Goal attainment.” Personal Review (January 1998): 40. He has 30 years of management experience and is a frequent contributor of management-related articles. 8. Earlier.html. Also. Ibid.” Wood & Wood Products (October 2004): 23. “Empowerment: Theory and Practice. Carlos. discounts at health clubs. In his study. About the Author Reward Empowered Employees Base rewards are factors that motivate individual employees. 11. Self-goal-setting. and recognition.” The machine went on line three hours before the scheduled time. commitment. 4. Tom Dossenbach. Fragoso..” Journal of Applied Management Studies (December 1998): 223. The Three Keys to Empowerment (San Francisco: Barrett-Koehler Publishers. “An Overview of Employee Empowerment. CM Endnotes 1.” 10. Empowered employees know company goals and their roles within those goals. we need you to revise the blueprint drawing on the pressing machine to show its placement three feet to the west. and there is no reason why we can’t meet the scheduled start KENNETH E. promotion.P r o D C O R N E R Development of employees’ skills. Upper management must be committed and provide employees with resources to promote continuous improvement in their company. Letting small problems simmer—not be solved—may allow them to grow into bigger and unmanageable problems.” Jack said. Adrian Wilkinson. “An Overview of Employee Empowerment. “I agree. Jason Hayes. respect for others. tomorrow evening. Carol Yeh-Yun.iusb.” School of Business. money. John Carlos. March 2006 / Contract Management ■ 7 . Giving them the opportunity to solve their own problems and please customers in their own way helps some of them to be ready to move into the supervisory position themselves.edu/journal/2000/fragoso. Empowerment gives employees the opportunity to solve problems as they arise. Motivators inspire a person to succeed. Tennessee. Send comments on this article to cm@ncmahq. Fragoso. Blanchard. and self-leadership characterize empowered employees.m.” Accessed at www. Enhanced problem-solving. and develop behaviors useful in other areas of their lives. and child care). Empowered employees become competent and committed to the company. “The Essence of Empowerment: A Conceptual Model and a Case Illustration. “Let Your Employees Handle the Trees. promotion to a new position. 2003). give work–life awards (educational seminars. 2. resulting in reduced labor costs and additional production output. Inc. and Randolph. Empowered employees meet department and company goals and promote an increasingly positive and progressive workplace. and Alan Randolph. social interaction. and special roles and assignments. Christopher Bartlett and Sumantra Ghoshal. 3. Use and develop employees to their full potential. N. productivity. “An Overview of Employee Empowerment: Do’s and Don’ts. Individual rewards may include direct monetary rewards. Time spent solving problems uses time to accomplish necessary tasks. Employees increase in motivation. “Joan. self-direction. monetary bonuses. 1997): 322–324. “Empowerment is one of the greatest ways that I have found to develop employees. you learned about Joan’s dilemma trying to locate her boss to approve changing the placement of a machine. Examples of motivators are admiration.